BUSS1030 Study Guide - Final Guide: Accrual, Management Accounting, Income Statement
Document Summary
1, the role of accounting in business an information system that measures business activities, processes information and communicates financial information. Provides financial statements that report results of operations, financial position and cash flows both to managers and external stakeholders. Internal users make decisions for the entity. providing managers with information for day-to-day running of the business include managing the company"s plant, equipment and human resources requires forward looking. Planning choose goals and decide how to achieve them. Controlling implement plans and evaluate operations by comparing actual results to the budget. Quantifiable in money terms; focus on objective and verifiable data. Can contain non-financial information; less focus on objectivity and verifiability. Asx: inforce company rules(financial/accounting: financial statement. Balance sheet: report of an entity"s assets, liabilities and equity as at/of a specific date. Income statement: report of an entity"s revenues, expenses and profit/loss for the period.
